In the old days, bankers used to take commercial brokers out to lunch…we were customers. They’d tell us how much we were valued, and they would tout their customer service. Nowadays, we invite them to lunch and we’re pretty delighted if they return our calls.
Brokers differ on which used to be more difficult to find: deals worth doing, or finding a buyer and seller that could agree to terms. Financing was never easy, but it certainly was the least problematic of the three. Now it may be the most important of the three and the hardest to find.
Several months ago I spent several hours with a commercial mortgage broker reviewing current needs. One project needed a $2 million loan, one was twice that, and others were smaller. That broker hasn’t called back yet. Actually it’s been so long I wouldn’t take his call now. I worked with another company for weeks on a deal…then they called and wanted additional information and additional equity so that the loan would be at 49% LTV. Oh, and by the way that’s a full recourse loan. Additional information requests I can explain to the client, the LTV part is tougher. Recourse loans on development projects are expected, but on take-out multifamily financing? Did I mention they had a 1.30 DSCR?
ENTER HOLLY BRAY:I felt at one point that I needed to stop looking for new clients and deals, and focus on funding for the ones I had. Holly Bray and Love Funding changed that. She noticed one of my LinkedIn posts and called. We spoke at length about the market, my needs, their offerings, and she promised to send me some information. She restored my belief in bankers by answering my questions, getting me the information faster than promised, and then checking back with me to discuss the details of the various programs. Love Funding is a National, full-service, mortgage banking firm specializing in financing a broad spectrum of commercial real estate including multifamily, nursing homes, assisted living facilities, and board and care facilities. With Rose City’s focus on the multifamily segment it was their HUD 223-f loans that caught my eye.
These are non-recourse loans permitting LTV’s as high as 85%, and DSCR’s as low as 1.1765. You can finance repairs and upgrades up to $6,500/unit adjusted to the high cost factor for the market (Portland’s factor is 248%, or $16,120 unit). They’ll even base loans on current market income and consideration of improvements (proforma). Added benefit: 223-f loans feature 35-year amortization schedules.
For complete details about this program or other loan products, call Holly Bray at: 202-887-1849 or email: hbray@lovefunding.com. Isn’t it time to start working with professionals?